{
  "docId": "019dd923-622c-750b-8b9a-931d15d7e8ac",
  "docSlug": "c71f39d7ed80",
  "documentTitle": "SMART Global Holdings, Inc. (SGH)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-25 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 21,
  "pageCount": 35,
  "prevPage": 20,
  "nextPage": 22,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 14,
  "notes": "The chart uses a vertical red line to mark the 'Penguin Acquisition' event.",
  "elementsJson": [
    "line_chart",
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-931d15d7e8ac/21",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-931d15d7e8ac",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-931d15d7e8ac.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-931d15d7e8ac#slide-21",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The chart above shows that SGH has begun exhibiting negative operating leverage – its operating expenses remain stable even as revenue declines rapidly.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-78b4-70ad-b391-e76679f378f8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.76,
        "x": 0.12,
        "y": 0.12
      },
      "kind": "chart",
      "text": "Line chart showing OpEx and Revenue trends from 1Q18 to 3Q19",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7edc34f1-5735-449d-b624-68e7e702c774",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "operating leverage",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-78b4-70ad-b391-eaf786d0c586",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.86,
        "x": 0.07,
        "y": 0.55
      },
      "kind": "paragraph",
      "text": "SGH has continued their acquisition “strategy” with the July 2019 acquisitions of Artesyn Embedded Computing and Inforce Computing.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7d7fa7b5-8057-4f1a-8c00-3c0ba6482e3d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.86,
        "x": 0.07,
        "y": 0.48
      },
      "kind": "paragraph",
      "text": "The chart above shows that SGH has begun exhibiting negative operating leverage – its operating expenses remain stable even as revenue declines rapidly.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f4c5d8ec-49c3-464e-a1dd-1edf74961036",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.86,
        "x": 0.07,
        "y": 0.62
      },
      "kind": "paragraph",
      "text": "Based on management’s guidance for a 4Q19 revenue contribution of $10 million from Artesyn and Inforce combined, we estimate Artesyn’s annual revenue to be around $60 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fe0c3cbe-1ccd-4b7a-b7ec-e27548f85006",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.6,
        "x": 0.07,
        "y": 0.92
      },
      "kind": "source-note",
      "text": "17 “SGH July 9, 2019 M&A Conference Call” via Bloomberg LP, accessed August 12, 2019",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4c37c703-130f-48c3-885d-8e417109374b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.44,
        "x": 0.28,
        "y": 0.105
      },
      "kind": "title",
      "text": "SGH Cumulative % Change From 1Q18: OpEx vs. Revenue",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1a042aea-2b50-43cb-94ae-f9456b5205d9",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [],
  "loops": [
    {
      "to": 22,
      "from": 16,
      "name": "Aha Moment",
      "slug": "03-aha-moment",
      "bestFor": "Data-heavy sections, research findings, analytical arguments",
      "matchId": "b609d924-f695-472b-9a8c-f06626448acd",
      "evidence": "The document's analysis of SGH's financial data and market trends.",
      "position": 1,
      "objective": "To highlight the implications of SGH's strategy and financial performance",
      "structure": "The Problem/Question -> What the Data Shows -> The Insight",
      "confidence": 0.7,
      "description": "Establish a tension, present data, then deliver the insight that changes everything"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}